Marketing Budget Question
How much does your Series A (20 to 30M funded) startup spend on marketing per year? Please leave in comments on how you spend it.
1M for 6 months
What is an efficient CPA? Scale that as much as possible.
Experience at multiple series b companies and its always been $2m to $5m
Annual budget ? That seems quite high - isn’t it a percentage of projected sales revenue ?
Was it a B2B or B2C startup ?
10% of the budget should go towards your marketing!
10% of funding you mean ?
30-40% of budget
10-yr CAGR 200%. If bitcoin performs half as well for the next 5 years, a $160k investment will land you at $5 million Bitcoin has 100 million wallets and is a $1 trillion asset with a TAM of $100 trillion. If a stock runs up quickly, it’s considered overvalued. If bitcoin runs up quickly, it gets stronger - check out metcalfe’s law If we get hyperinflation not only would it go up but it would protect you versus other assets This is solely based on numbers
60M ARR Startup - 2.5M this year, probably double that next. Marketing is about scaling tests that work. It doesn't matter what you spend. Impact focus!
That’s still 4% - you probably don’t need much marketing coz already doing well?? Anyway, where do you spend this 2.5?
Very little. Marketing is very challenging and very competitive. If you're B2B, focus on building the right deeply connected individuals in your space and then move from one direct referral to the next. You can easily burn your entire raise in marketing if you're not careful. Spend your money more wisely than spray and pray. I fear some of the comments here are giving you bad, stock advice. If you really have product/market fit, your customers are going to be your biggest evangelists. Source: I'm on my second startup and sold my last company to a major entity for >$100 million.
+1 to this, but really depends what space the startup is in, if B2C you typically have to invest into performance marketing, if B2B focused on larger companies, yep white glove approach and case studies go a long way and don't have to be that expensive on the marketing side. Btw are your startups your side gigs or how does Lyft play into that? And well done!
I left Lyft last year when it all hit the fan.
On paid?
No on everything - but also on paid
It depends what you’re marketing
B2B software
Frankly, While “B2B software” is technically accurate, it reflects lack of business acumen. B2B software for what type of industry, customer? What problem the software is solving? Is it a me 2 product or some unique new ML tech solving something in a very new way, creating an altogether new market niche? If it’s an earth shattering product with no comparable, you may need to do more, spend more, or come up with some creative low cost way to market your product.